Has anyone here gone through a major crisis and yet continued to trade through it? How was your performance? I've been going through one myself in the past 2 weeks and I don't see any end in sight and it's really affected my trading. I'm in full defensive mode now when I trade. I'm thinking about taking a week or two off but my problems won't be going away anyways so I don't see the point. I not trade until this problem is resolved because I don't know if it'll be resolved.
You will probably save more money not trading with confusion and lack of concentration, than the potential upside of any trading strategy that you could adhere to... Time off is probably the best money-management decision for those situations. Look at something with good fixed interest gains... at least then your money are doing some work. You can completely leave trading on the side for some time, without that causing any further kind of problems. On a personal level, that will probably get you through the personal crisis faster and back on track again. Less to worry about - that is how to effectively deal with overcoming problems and fixing them. This approach successfully adapts itself to any kind of work or problem solving situation - just like "divide and conquer". http://en.wikipedia.org/wiki/Divide_and_conquer Focus and give your best concerted effort at solving problems needing attention separately - which yields most effective results. That is how to stay positive as well, and not let anything run you down or overwhelm you. http://en.wikipedia.org/wiki/Problem_solving http://en.wikipedia.org/wiki/Lateral_thinking When you feel ready to take on markets again, follow them for some time before jumping back in. Retrace old strategies, reflect on what worked and what needs adjusting to the situation at hand. Continue building on what you know, your strengths and how to improve yourself and your strategies. http://en.wikipedia.org/wiki/Adaptation http://en.wikipedia.org/wiki/Systems_science http://en.wikipedia.org/wiki/Decision_theory http://en.wikipedia.org/wiki/Two-level_utilitarianism http://en.wikipedia.org/wiki/Epistemology http://en.wikipedia.org/wiki/Phenomenology http://en.wikipedia.org/wiki/Integrity Also, try to find out more about understanding yourself and others so that you can see how to handle personal crisis better... http://www.personalitypage.com/relationships.html http://www.keirsey.com/ http://www.cognitiveprocesses.com/ http://www.humanmetrics.com/cgi-win/JTypes2.asp http://www.bbc.co.uk/science/humanbody/mind/index_surveys.shtml http://www.bbc.co.uk/science/humanbody/ Good luck!
You weren't specific about the nature of your problems. Was it personal or a string of losses in the market? As you pointed out, if you stop trading how do you know when it's safe to start again? I recall reading somewhere (one of the Market Wizards books, maybe?) that you trade smaller during rough patches. Then increase size as the patch resolves itself. Maybe the one system you use is sensitive to market conditions and current conditions are affecting your performance. Having a couple of systems that work during various market conditions is better than having one cash cow.
From what you have written, my only recommendation to you is that you see your doctor, discuss it candidly, whether it be emotional or physical and seek his opinion as to whether you should see a consultant. In the meantime, SHUT OFF YOUR TRADING PLATFORM until there is sufficient progress in your attitude that will allow you to trade "unhinged". Good luck.
I have similar situations like you before, but both occasions were handled differently. The first "family" trouble got me so depressed that I lost interest in anything, even trading which I loved to do. It's not that I will lose money with a troubled mind, but so depressed that I don't even want to login at market open. The second "personal" crisis, by now I knew what depression felt like so somehow I was able to continue to trade. The trading took my mind off my troubles at least for the few hours I'm into market. I switch very frequently to the simulator mode which helps to limit reckless real losses, and still kept my mind in the zone for trading. I did well this period, reminding myself that the main objective is to 'trade well' (whether real cash or simulator mode) and not obsessed about 'making money' or getting back on previous losses. The fact that you started this post, it seems you wanted to hear others telling you it's safer not to trade. If at this time you think your crisis is not going away soon (or never will), then piling up continuous losses will get you into depression spiral very easily. Very hard to get out of depression on your own, just beware. Regards,
thanks guys. The crisis I'm talking about is not a string of losses, I've been doing quite well in the market all year until about 2 weeks ago when things start to unravel. My account has experienced a 10% drawdown since then. And I'm starting to feel like "fuck it" to losses when I normally don't even let it run. I'm beginning to become careless and my thoughts are clouded. During the trading day, while trading, I would just walk away from the computer and take a short nap ~ maybe to just stop thinking about the problems. But yeah, I started this thread in hopes of hearing similar situations from people and how they are able to segragate situations like these from their trading. I have talked to a doctor friend of mine and I have been talking to family and friends. I'm starting to lose interest in trading lately, too, so I suppose I need to take a break.